Tens of Thousands of Approved Housing Projects at a Standstill Due to Cost Pressures

Tens of Thousands of Approved Housing Projects at a Standstill Due to Cost Pressures
High-rise apartments are seen in the inner city suburb of Surry Hills in Sydney, Australia, on May 8, 2021. Lisa Maree Williams/Getty Images
Rebecca Zhu
Updated:

Developers are putting a hold on approved residential housing projects because of surging construction costs at a time when Australia is expecting well over a million migrants within the next five years.

According to a new analysis by KPMG Australia, the plateau in property prices combined with about a 30 percent increase in construction costs in Sydney and Melbourne has prompted developers to shelve projects.

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